How does a rising export impact currency values?

A rising export generally leads to an appreciation of a country's currency. When a nation exports more goods and services, foreign buyers must purchase the exporting country's currency to pay for these products. This increased demand for the currency tends to drive up its value relative to other currencies.

As exports rise, it signals to the foreign exchange market that there is strong demand for domestic goods, which can positively influence perceptions of the economy's health and, consequently, its currency. Investors might also be more inclined to invest in that country's assets, further increasing demand for its currency.

In summary, when exports increase, there is typically greater demand for the currency, leading to its appreciation against other currencies.